The earliest attestation for this rumor that I have found is in Riker's Annals of Newtown, published 1852 : https://archive.org/details/annalsofnewtowni00rike/page/373/mode/1up?view=theater
Riker is not as definitive about it as the Scudder genealogy:
"Concerning the ancestry of Capt. Richard Betts, the progenitor of the Newtown family, nothing positive has been ascertained, though it is probable that he was descended from a family of this name, located at Withenden, in Suffolk co., England, as early as the fifteenth century. He himself is believed to have come from Hemel-Hempstead in Hertfordshire, or its vicinity."